California Resources Corp. has agreed to acquire pipeline company Crimson Midstream Holdings LLC from CorEnergy Infrastructure Trust for $63 million in cash.

Announced on Monday, August 10, the transaction will significantly expand CRC’s energy transportation network across the state by approximately 3,200 kilometers (2,000 miles) of pipeline infrastructure.

The acquisition adds a total crude oil transportation capacity of up to 400,000 barrels per day to California Resources Corp.’s platform.

Expected to close in the third quarter, subject to regulatory approvals, the transaction includes several major regional pipeline routes, notably the SoCal Pipeline Network, the IVEC Line, the San Pablo Bay Pipeline, and the KLM Pipeline.

The deal builds directly on the energy producer's broader strategy to control critical midstream assets in California.

Earlier this year, the company expanded its Central Valley footprint by acquiring Line 100, a 118-mile crude oil pipeline system offering 60,000 barrels per day of capacity.

That acquisition also brought CRC more than 1 million barrels of crude storage capacity, along with integrated gathering, transportation, and truck-loading facilities linked to key regional production hubs.

CRC President and Chief Executive Officer Francisco Leon said the expanded pipeline assets will enable the company to efficiently deliver California-produced crude barrels directly to the region's highest-value markets.

"Crimson is doing exactly what an acquisition should be doing for us," Leon said on a conference call with analysts.

"It is adding more stable contracted cash flow and makes the broader California platform even stronger."

Leon added that the Crimson pipeline system holds greater long-term value within an integrated operator than as an independent midstream venture.

The move follows CRC’s recent acquisitions of producers Aera and Berry, forming part of a broader strategy to establish an integrated energy platform.

The transaction comes as local market conditions show signs of turnaround, driven by a higher rig count and rising oil production feeding directly into pipeline networks and regional refineries.

"Going forward, we see a potentially fragile global energy supply chain, where reliable barrels are going to become increasingly more valuable, which makes owning this California infrastructure even more important," Leon said.